Julius Berger Nigeria Plc has announced its diversification into the oil and gas industry by acquiring a 20 percent equity stake in Petralon Energy Limited.
The firm said in a statement, which was made available to the Nigerian Stock Exchange, that the acquisition was in line with its strategic partnership and joint investment agreement with Petralon Energy for the acquisition and development of oil fields in Nigeria.
It said Petralon Energy had offered 20 percent of its equity share capital in Petralon 54 Limited for subscription to Julius Berger Investments Limited, a wholly owned subsidiary of Julius Berger.
It added that the subscription was subject to engagement and the receipt of all, consents, and approvals.
The statement read in part, “The board of JBIL had approved the acquisition subject to the necessary engagements and receipt of all the requisite regulatory approvals and consents.
“The Investment has received ministerial consent but necessary engagements with key stakeholders regarding the Investment, continues.”
Julius Berger said the share capital of JBIL was sufficient to fund the investment.
According to the statement, the investment is in line with the strategic goals of Julius Berger on diversification and would enable the acquisition of know-how and experience in the oil and gas sector.
Julius Berger said further details would be provided to the capital market as the transaction progressed.